A year ago, Sprouts Farmers Market stood out as one of the grocery sector’s strongest performers, delivering outsized gains that drew comparisons more often reserved for tech companies than food retailers.
At the time, the specialty grocer posted nearly 12% comparable-store sales growth—far outpacing conventional supermarket operators that were largely reporting low single-digit gains. The company also won praise from investors and analysts for its focus on health-conscious shoppers, a strategy that helped fuel rapid top- and bottom-line growth.
That momentum, however, has since slowed sharply.
Shares of Sprouts have fallen by nearly 60% since peaking above $173 in early May 2025, following a steep climb that included a roughly 24% increase during the first half of last year and a more than 700% surge over several years prior. While the stock has ticked up modestly in recent weeks, the broader trajectory reflects investor concern about the company’s outlook.
The retailer’s most recent earnings report underscored the shift. Comparable-store sales declined steadily after reaching 11.7% in the first quarter of 2025, dropping to 1.6% by the fourth quarter, according to the company. The slowdown became more apparent in October, when Sprouts revealed quarterly comps had fallen to 5.9% from more than 10% in the prior period—triggering a 25% single-day stock drop.
The deceleration comes as traditional grocers such as Kroger, Albertsons and Ahold Delhaize have recently posted stronger comparable sales, adding pressure on Sprouts to regain its footing.
Executives say part of the challenge stems from the fading of temporary tailwinds that boosted results last year. During the company’s fourth-quarter earnings call, CFO Curtis Valentine noted that factors such as elevated egg prices and the King Soopers strike in Colorado contributed to prior gains, making them difficult to sustain.
Analysts suggest the company may not have fully communicated its reliance on those one-time drivers. Arun Sundaram, senior vice president at CFRA Research, said investors had been weighing whether Sprouts’ performance reflected a durable model or temporary conditions.
In addition to waning external factors, Sprouts is also facing shifting consumer behavior. The company has long targeted shoppers focused on healthy eating over price sensitivity, but even those customers are increasingly seeking value.
“[O]ur customers are saying to us, ‘Look, we really love your business. We really love what you do. But can you help us a little bit on … affordability?’” said Jack Sinclair during the earnings call.
Sundaram added that Sprouts has struggled to position itself as a value destination at a time when more consumers are prioritizing price, putting additional strain on performance.
“They’re lapping strong growth at the same time that they’re also experiencing some weakness amongst their customer base,” he said. “A lot more customers now are leaning more towards value, and Sprouts hasn’t been able to deliver on the value that you can find at other retailers.”
As Sprouts looks to stabilize growth, the company is expected to increase its focus on pricing and promotions—moves that could help drive traffic but may weigh on margins in the near term.
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